Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.

In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.

Remembering 9/11: The Rudy Giuliani Interview

Giuliani: Well we have to do that. We have to change it. The conventional patterns that have gotten us into the trouble we’re in, we even now –

Forbes: Just like New York.

Giuliani: Just like New York. The conventional patterns that we’ve been in have gotten us into a situation where we don’t seem to be able to face up. We have to be able to face our problems. We ignore them. We pretend they don’t exist. President does it big time – this whole notion of leading by following, which is a contradiction. Hey, someone who leads by following is a follower. The leader is the person out front, taking the risk, setting forth the program.

A President Who Will Lead

We have a president that refused to do that. He doesn’t put out programs the way Democratic and Republic presidents did, the way Kennedy did, the way Reagan did, the way Clinton did, the way Bush did. So we have that. Then we have Congress with two diametrically-opposed, highly-ideological views that they can’t seem to meld together. And we have a country whose economy could easily be saved.

The biggest tragedy about this is it’s a few simple things that have to be done that would revive our economy. It’s not in the absolute freefall that people think it’s in. It’s mostly government policies to have it in that freefall. And it’s a great opportunity for America because the rest of the world is in turmoil. If we could stabilize our economy, we would make great gains. And all we need is a plan.

We need the President of the United States to stand up and say, “We’re going to stop the excessive spending. We can’t do it all at once. But we’re going to do it over a five or ten-year period. Here’s a big down payment on it. We’re going to take the tax code. We’re going to make it real simple. We’re going to make it something that people find easy to use as opposed to hard to use. We’ll collect as much revenue, or more, from the new tax code as the old one. And then we encourage businesses to invest in the United States. Cut the corporate tax. Get rid of the capital gains tax or cut it in half, one or the other. Allow companies to repatriate their money.”

I mean, these are just – they seem so obvious, that these are the things you would do to create jobs, that we must be in some kind of paralysis that we’re not doing it. And then somebody – this is where leadership really comes in, that really affects even my side, the Republican side. Somebody’s got to stand up, other than just Paul Ryan and say, “We’ve got to cut Medicare and Medicaid. We don’t have to end it, we have to cut it. And it’s going to mean some sacrifice.” But the reason, ultimately, government expenditures are out of control is really healthcare expenses. That’s really what’s driving the whole –

Forbes: Got to change the paradigm.

Giuliani: That has to change. If that doesn’t change then we do become a second-rate economy. And we’re capable of doing it. And we’re capable of doing it in a way that won’t hurt people. We’re capable of doing it in an intelligent way. It doesn’t mean they’re going to get everything that they want, but they’ll get most of what they want. And that’ll be a lot better than a system that goes bankrupt.

And the only one I can see who’s had the courage to really say that directly, of the political figures in office, is Paul Ryan. And that’s why I thought it was a shame that he didn’t run for president. Because he’s the only one that’s willing to look in the camera and say, “We got to touch what they call the third rail. Because if we don’t touch the third rail, the third rails going to explode.”

Giuliani For President In 2012?

Forbes: How about you?

Giuliani: Well I’m thinking about it. The idea of getting nominated is a difficult one for me. Not so much getting elected, but getting nominated, because of the social positions and the social views, which I don’t understand completely. Because, to me, I think I’m as conservative as you possibly can be.

Forbes: You had me convinced in 2008.

Giuliani: I had The New York Times convinced. But I do think whether Republicans win or lose, the Republican candidate has to talk about containing the cost of Medicaid and Medicare. Otherwise you do not have a sensible program for reducing our out-of-control spending. Everything else has to be part of it. But that has to be part of it. If you’re too afraid to take that on, if you need super committees to take that on, then you’re not a leader. And you don’t belong being president.

Forbes: But you’re right, in closing, about the example of the United States. What you did in New York on crime, it’s been emulated in Newark and other cities around the country and around the world.

Giuliani: The question about New York City was “You can’t really reduce crime – it’s too big a city. You have to have 1.1 million people on welfare. The city has to spend all this money and constantly be flirting with bankruptcy. That’s just the way it is in a big city.” I mean, nobody accepted the fact that if you just had the courage to set out a plan and stick with it – reductions of 4% or 5% or 10% each year, putting money back into tax relief so businesses would be happy with New York, putting some money into reducing crime and some intelligent programs and you just stuck with it – you could change the paradigm. And you can do it in really much shorter time than you think. But you don’t do it by appointing a committee to do it. You don’t get a committee to tell you to do what’s difficult.

Because you know what happens when you appoint a committee? If you’re the kind of person that has to appoint a committee to tell you to do what’s difficult, then when the committee tells you to do what’s difficult you don’t do it. Which is exactly what happened with the last committee that Obama appointed. When Simpson and Bowles came back with a couple of difficult recommendations, the White House went hiding on it. So, I mean, this whole government by committee is so dangerous. We need a leader who’s willing to take the risk of being right or wrong. We’ve got some good governors that are doing that. Governor Christie is doing that. Governor Kasich is doing that. Governor in Ohio, Governor Kasich. Governor in Wisconsin is doing that. I mean, we’ve got a group of governors that are taking these things on the right way. That’s what the President should be doing.

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